RBI imposes monetary penalty on KLM Axiva Finvest Limited over gold loan auction surplus
24 September 2026
The Reserve Bank of India imposed a monetary penalty of ₹2.70 lakh on KLM Axiva Finvest Limited by an order dated September 22, 2026. The RBI found that the company had failed to pay the surplus amount realised from the auction of pledged gold articles, over and above the loan outstanding, to certain borrowers. The penalty was imposed under Section 58-G(1)(b) read with Section 58-B(5)(aa) of the Reserve Bank of India Act, 1934. It followed a statutory inspection with reference to the company's financial position as of March 31, 2025, a show-cause notice, the company's reply and a personal hearing.
Penalty:
₹2.70 lakh
Order date:
September 22, 2026
Provision:
Section 58-G(1)(b) read with Section 58-B(5)(aa), RBI Act, 1934
Inspection reference date:
March 31, 2025
Why it matters for exams: Shows how the RBI enforces its directions on NBFCs, including gold loan auction rules, under the RBI Act, 1934.
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